Valuation of Benefits; Use of Single Set of Assumptions for All Benefits

Résumé

The Pension Benefit Guaranty Corporation solicits public comment on its proposal to amend its regulations to provide for the use of a single set of valuation assumptions--those currently used by the PBGC to value benefits to be paid as annuities--for purposes of allocating assets to benefits under section 4044 of ERISA. While the PBGC is proposing to discontinue using its lump sum valuation assumptions for purposes of allocating assets to benefits, it intends to continue using its existing lump sum assumptions for lump sum payment purposes at least through 2000. The PBGC is considering replacing its lump sum payment assumptions, sometime after 2000, with a modified version of its annuity assumptions. In a separate notice published elsewhere in today's Federal Register, the PBGC is soliciting public comment on this possible change.